Portugal rating plummets

Fitch downgraded Portugals credit rating to junk status on Thursday, citing large fiscal imbalances, high debts and the risks to its European Union mandated austerity programme from a worsening economic outlook, Reuters reported.The ratings agency cut Portugal to BB+ from BBB-, which is still one notch higher than Moodys rating of Ba2. S&P still rates Portugal investment grade.Fitch said a deepening recession made it much more challenging for the government to cut the budget deficit but it still expected fiscal goals to be met both this year and next.However, the risk of slippageeither from worse macroeconomic outturns or insufficient expenditure controlsis large, Fitch said.
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